Risks are still seen as lying in geopolitical tensions as well as regional conflicts.
BASF is continuing with its restructuring measures and cost reduction programs in order to expand its position in the competitive environment.
For the year 2007, BASF expects sales of close to €58 billion. Also in the fourth quarter, scheduled plant turnarounds, in particular in Petrochemicals, are set to reduce earnings. Nevertheless, BASF expects EBIT before special items in 2007 to exceed the previous year's record level.
All segments increase sales in the third quarter: In the Chemicals segment, sales (up 5 percent) and EBIT before special items both increased. All divisions with the exception of Petrochemicals contributed to this increase. The Petrochemicals division was impacted by scheduled plant turnarounds.
Sales in the Plastics segment rose 3 percent due to higher volumes and prices. Earnings did not match the excellent result of the previous year's quarter. This is primarily due to a decline in earnings in the Performance Polymers division.
The Performance Products segment increased sales slightly by 1 percent due to higher volumes. A significant earnings increase in the Construction Chemicals division was not able to compensate for declines in other divisions.
The Agricultural Products & Nutrition segment posted the strongest sales growth of all segments in percentage terms, up 7 percent. Both divisions within the segment improved earnings.
In Agricultural Products, higher sales prices were realized, in particular for fungicides for soybean cultivation in South America; also volumes were significantly increased. Restructuring measures in Fine Chemicals have been clearly successful. In addition, higher sales prices for several vitamins contributed to the significant earnings increase.
Higher volumes in natural gas trading led to a 3 percent sales increase in the Oil & Gas segment. Earnings were below the result of the previous year's quarter due to lower oil production and declining margins in natural gas trading.
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